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Combine 2 cups flour, sugar, undissolved yeast and salt in a large bowl. Heat milk, water and butter until very warm (120° to 130°F); stir into flour mixture.
Stir in egg and enough remaining flour to make soft dough. Stir in sun-dried tomatoes and basil.
Knead on lightly floured surface until smooth and elastic, about 6 to 8 minutes. Cover; let rest on floured surface for 10 minutes.
Divide dough in half. Roll each half to fit 2 greased 8- or 9-inch square pans. Place dough in pans and with a sharp knife, cut dough in each pan into 16 rolls; cover with plastic wrap.
Place large shallow pan on counter; fill half with boiling water. Set wire rack over pan; place baking pans on rack. Let rise for 20 minutes.
Dust tops with 1 tablespoon flour. Bake in preheated 400°F oven for 15 minutes or until done. Remove from pans; let cool on wire racks.